FX.co ★ Oil Edges Lower on Trump Remarks

Crude oil prices slipped toward $90 per barrel on Monday, extending last week’s steep losses after President Donald Trump said it was “highly unlikely” he would authorize additional strikes on Iran, provided negotiations over its nuclear program and efforts to reopen the Strait of Hormuz make substantial progress. Trump also conceded that the widely unpopular conflict—which has driven up oil and gasoline prices—was a factor in Republicans’ historic defeat in the midterm elections.

WTI crude tumbled nearly 13% last week amid expectations that Democrats would move quickly to seek a resolution to the Middle East conflict. However, US Secretary of State Marco Rubio tempered hopes for a breakthrough, characterizing Iran’s demands to date as unacceptable. Meanwhile, Houthi attacks damaged a landmark building in Riyadh’s financial district and caused minor damage to offices operated by Saudi state oil giant Saudi Aramco.